CENTOGENE Announces Pricing of Primary and Secondary Public Offering of Common Shares

Rhea-AI Summary

Centogene N.V. (Nasdaq: CNTG) has announced the pricing of a public offering of 3,500,000 common shares at $14.00 each, aiming to raise $28 million for the company and $21 million for selling shareholders. The offering includes 2,000,000 shares from the company and 1,500,000 shares from shareholders. The underwriters have a 30-day option to purchase an additional 525,000 shares. Proceeds will support research and development for orphan drug initiatives, working capital, and potential acquisitions. The offering is set to close around July 14, 2020.

Positive

• Gross proceeds of $28 million to fund research and development for orphan drugs.
• Potential for further investment through the underwriters' option for additional shares.

Negative

• Selling shareholders benefit from the sale, not the company, limiting immediate financial gain.
• Potential dilution of current shareholder value due to the public offering.

CAMBRIDGE, Mass. and ROSTOCK, Germany and BERLIN, July 09, 2020 (GLOBE NEWSWIRE) -- Centogene N.V. (Nasdaq: CNTG) (“Centogene” or the “Company”), a commercial-stage company focused on rare diseases that transforms real-world clinical and genetic data into actionable information for patients, physicians, and pharmaceutical companies, announced today the pricing of its primary and secondary public offering of 3,500,000 common shares of the Company, consisting of 2,000,000 common shares offered by the Company and 1,500,000 common shares offered by selling shareholders at price to the public of $14.00 per common share for total gross proceeds to the Company of $28 million and total gross proceeds to the selling shareholders of $21 million.  The Company will not receive any proceeds from the sale of common shares by the selling shareholders. In addition, the selling shareholders have granted the underwriters a 30-day option to purchase up to an additional 525,000 common shares at the public offering price, less underwriting discounts and commissions.

The offering is expected to close on or about July 14, 2020, subject to customary closing conditions.

Credit Suisse and SVB Leerink are acting as joint book-running managers for the offering, with Baird, BTIG and Kempen & Co acting as co-managers.

Centogene intends to use the net proceeds of the offering for research and development to support orphan drug development with its knowledge-driven information platform, as well as for working capital and other general corporate purposes. A portion of the net proceeds may also be used to acquire or invest in complementary businesses, assets or technologies.

A registration statement relating to these securities was declared effective by the Securities and Exchange Commission (“SEC”) on July 9, 2020. The offering is being made only by means of a prospectus. Copies of the final prospectus relating to the offering may be obtained, when available, for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, copies of the final prospectus, when available, may be obtained from Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, 6933 Louis Stephens Drive, Morrisville, NC 27560, by telephone at (800) 221-1037, or by email at usa.prospectus@credit-suisse.com; or SVB Leerink LLC, Attention: Syndicate Department, One Federal Street, 37th Floor, Boston, MA 02110, by telephone at (800) 808-7525, ext. 6218 or by email at syndicate@svbleerink.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About CENTOGENE

CENTOGENE engages in diagnosis and research around rare diseases transforming real-world clinical and genetic data into actionable information for patients, physicians, and pharmaceutical companies. Our goal is to bring rationality to treatment decisions and to accelerate the development of new orphan drugs by using our extensive rare disease knowledge, including epidemiological and clinical data, as well as innovative biomarkers. CENTOGENE has developed a global proprietary rare disease platform based on our real-world data repository with approximately 3.0 billion weighted data points from over 530,000 patients representing over 120 different countries as of March 31, 2020.

The Company’s platform includes epidemiologic, phenotypic, and genetic data that reflects a global population, and also a biobank of these patients’ blood samples. CENTOGENE believes this represents the only platform that comprehensively analyzes multi-level data to improve the understanding of rare hereditary diseases, which can aid in the identification of patients and improve our pharmaceutical partners’ ability to bring orphan drugs to the market. As of March 31, 2020, the Company collaborated with 39 pharmaceutical partners covering over 45 different rare diseases.

Media Contact:

CENTOGENE
Sun Kim
Chief Strategy and Investor Relations Officer


FTI Consulting
Bridie Lawlor 
+1.917.929.5684

FAQ

What is the share price for Centogene's public offering?

Centogene's public offering is priced at $14.00 per common share.

How many shares is Centogene offering in total?

Centogene is offering a total of 3,500,000 common shares.

When is the expected closing date for the offering?

The offering is expected to close around July 14, 2020.

What will Centogene do with the proceeds from the offering?

Centogene plans to use the proceeds for research and development, working capital, and potential acquisitions.

Who are the underwriters of Centogene's offering?

Credit Suisse and SVB Leerink are acting as joint book-running managers, with additional co-managers.